Services are not an asset

Why get lazy? Some services easily bring in $20k+ monthly and are easy to run. This only happens when you have loads of experience, a good process worked out, good and trustworthy staff, etc.

There's huge demand for services that deliver results. I know many providers who are fully booked for the next 3-6-12 months to come. Gives them peace of mind and allows them to re-invest heavily into building/acquiring other assets.

Could not agree more . Offering services to small companies made me money than my affiliate efforts at the beginning .It is the quicker way of earning and it is residual .You get paid month after after money and like rich said you can outsource most of the tasks .I have friends who are living comfortably running their services and doing very little work monitoring their services

Another good thing about service is that people are not going to rip off your product and try and resale .

Service is just a quicker .You don't have to trading time for money if you are offering service . It can be outsourced

So you would say services are a necessary evil when the other things didn't work out? And that there is more longterm value within products and affiliating?

This is what I meant ... maybe we should separate labour-kind of services from those that have more potential longtime-results as for example building a relationship.

Nevertheless - where is the exact distinction line between the two?

There have been good points made by both sides of the "debate." And while I am all about passive income and business delegation, and manage multiple businesses of my own, I still do a bit of business and HR consulting on the side. Why? For exactly the reason Andy Henry stated: I enjoy working with people, and take genuine delight in watching people excel. Plus I grow bored doing the same routine for long, so diversity of businesses and people keeps my work a hobby rather than a "job."

I believe that overall it is good to establish a passive income base so that, should you wish to take a vacation or become ill, you'll always have money that you can rely on. You're not on a permanent hamster wheel trading time for money.

But the idea that trading time for money is automatically an inferior option is too broad a stroke to paint. Offering services is a way for many to break into the IM industry and establish some name recognition. Passive income is infrequently built immediately, so earning some steady money via services can help pay the bills during the lean months until the passive income is enough to sustain your needs independently.

Would I wish to be in a position where my income was dependent on grinding out repetitive services? No. Like Johnny, that's too close to a job for me. But that's me. Some (including immediate family) are happy to engage in the service grind, taking pleasure in the fact that they are working for themselves rather than a traditional 9-5 job. If that lends someone the satisfaction and security they desire, more power to them! They are still their own boss, even if the income isn't passive.

Plus eventually one can automate services via outsourcing or automation, thereby making it a passive income stream in its own right.

As far as dealing with nightmare clients such as your girlfriend experienced, sometimes you'll get rudely surprised by someone, so it's not entirely avoidable, but overall I'd say that unless you desperately need a suspect client's money... don't accept the job. Some of my most miserable business periods when younger were when I allowed dollars to trump personality; I figured the color of their money was more important than how much I enjoyed working with them. Bleh, man was I wrong.

There are plenty of good people in the world, and life's too short to feel obligated to interacting with undesirables. I've refused to accept people as customers for services, physical products, and distribution contracts plenty of times. If I was in a do-or-die situation I may suck it up and take their money, but once you establish a solid customer base, you'll be able to be selective in who you work for.

Jeffrey

Thanks a lot for the book recommendation. I've just ordered it!

Exactly! Some service providers make more money than most affiliate marketers!

I think the issue here is trading time for money. It's almost impossible to get really rich (assuming that's your goal) by trading time for money. You need a product that brings in money passively, like a book, a song, or an invention (patent). All of those can bring in a steady income stream for years.

But if all we have is time and skills and we are good at it, then we can invest the excess money we earn and have a passive income from that, gradually increasing the share of passive income over time. We all know people who worked at jobs all of their working lives, who retired young, who never have to work again for the rest of their lives, and are well off.

But all of this is focusing solely on money. What about doing what you love? What about following your calling? To be truly happy, sometimes (I think always), you need to do what you love to do. If you really want money, you'll find a way to get it.